The document discusses several common organizational structures used by multinational corporations: global product structure, global area structure, global functional structure, mixed structure, matrix structure, and international division structure. It provides examples of each structure and diagrams to illustrate how they divide responsibilities between domestic and international divisions. The international division structure establishes a separate division to handle all international operations, distinct from domestic divisions.

1. Organisational
Structure in MNCs
Presented By, Joyal George

2. • Global Product Structure
• Global Area Structure
• Global Functional Structure
• Mixed Structure
• Matrix Structure
• International Division Structure
Common Organisational Structures in MNCs

3. Global Product Division Structure
• The domestic divisions are given worldwide responsibility
for product groups

4. Global Product Division Structure
CEO
Finance Marketing Production HR
Product Division
A
Product Division
B
Product Division
C
Product Division
D
Product Division
E
Asia S. America Europe
Britain Germany Netherlands
Marketing
Finance HR Production
Australia

5. Global Area Structure
• Primary operational responsibility is dedicated to area managers
each of whom is responsible for specific geographic regions
• This is polycentric structure

6. Global Area Structure
CEO
Finance Marketing Production HR
Area Division A
Asia S. America Europe
Britain Germany Netherlands
Australia
Area Division B Area Division C Area Division d

7. Global Functional Structure
The production department is responsible for the domestic and
international manufacturing

8. Global Functional Structure
CEO
Finance Marketing Production HR
Domestic Products
Product A
Product B
Product C
Product D
international
Products
Product A
Product B
Product C
Product D

9. Mixed Structure
• Hybrid organisation design that combines structural arrangements in a way
that best meets the need of the enterprise
• Temporary Structure

10. Matrix Structure
• Dual chain of command is the characteristics of matrix structure
• Adopted by companies which handles multiple projects at a time

11. Matrix Structure
General Manger
Production
Manager
Production
Group
Finance
Group
Finance
Manager
Marketing
Manager
R&D
Manager
Production
Group
Production
Group
Finance
Group
Finance
Group
Marketing
Group
Marketing
Group
Marketing
Group
Personal
Group
Personal
Group
Personal
Group
Project A Manager
Project B Manager
Project C Manager

12. International Division Structure
• Built to handle all international operations by a division created
for control
• Separate domestic managers from their international
counterparts

13. International Division Structure
CEO
Finance Marketing Production HR
Domestic
Division: Plant
Japan France
Australia
Domestic
Division: Tools
Domestic
Division:
Furniture
Domestic
Division:
Hardware
International
Division

14. Coco Cola (International Division Structure)
President of Coco-Cola
Finance
Marketing
Manufacturing
Corporate Staff
Eurasia & Africa
Division
Sub Division
Europe Division
Latin America
Division
North America
Division
Pacific Division
Sub Division Sub Division Sub Division Sub Division

15. Thank You